San Antonio’s craft-brewing industry is gearing up to make more suds

Several San Antonio companies are looking to tap into the growing craft beer movement.

Multiple new craft brewery projects are currently in various stages of development in the Alamo City, and more could come online as the market for handcrafted beers continues to expand in Texas and across the United States.

It’s projected in a new report that the statewide economic impact from Texas’ craft beer brewing industry could approach $6 billion by 2020. That would represent a major ground gainer for a state that has historically been slow to keep up with the national craft beer movement, and a number of players are looking to grab a share of that growing market.

“There is so much happening now that it’s hard to keep track of,” says University of Texas at San Antonio economics professor Scott Metzger, author of the new craft brewery report and founder of the Alamo City’s Freetail Brewing Co.

Michael DiCicco heads a group that plans to open a new craft brewery in industrial space located near Loop 410 and Fredericksburg Road. Busted Sandal Brewing Co. will initially have the capacity to brew about 1,000 barrels of beer annually. Roughly 20 percent of its beer will be packaged in 22-ounce bottles. That equates to about 36,000 bottles annually, according to DiCicco. The bulk of the beer produced by Busted Sandal will be delivered in kegs to wholesalers and retailers.

DiCicco did not reveal what it will cost to develop the new brewery. But he does say that Busted Sandal has multiple investors.

“We’re substantially funded right now,” DiCicco explains. “But we will look to bring in more investors.”

Growing demand

Plans are progressing for other brewery projects in San Antonio as well.

At press time, Eugene Simor, president of Alamo Beer Co., was awaiting approval from City Council on an incentive package and clearances that would allow him to develop a new brewery near the Hays Street bridge, immediately east of Interstate 37 near downtown.

Simor says he expects that construction on the project, which could cost nearly $8 million to develop, will start later this year. He adds that Alamo, which currently is contracting with Real Ale Brewing Co. in Blanco, could begin brewing its own beer at the new site as soon as the third quarter of 2013.

The planned development will include production facilities with the capacity to initially brew up to 40,000 barrels of beer, a tasting room, offices and space for a restaurant, which would be operated by a third party. Simor says the 25,000-square-foot facility could eventually brew up to 75,000 barrels of beer annually.

“Distribution has grown dramatically — to the point where it makes sense to build my own brewery,” says Simor, who insists that he will develop a new brewery on or near the East Side with or without council support.

Meanwhile, Jason Ard, owner of Old Boxcar Brewing Co., says he is in the process of developing a new craft brewery near San Antonio International Airport. That self-funded project will operate out of a 4,000-square-foot facility on Metro Parkway and have the capacity to brew 1,000 barrels of beer annually at the outset. Like the Busted Sandal project, the Old Boxcar development will be constructed to accommodate expansion as the demand for craft beers is expected to continue to grow.

“We expect to have beer on the market by mid-November,” says Ard, who also did not reveal project costs.

Old Boxcar plans to self-distribute its beer — at least in the beginning — delivering to accounts along the Interstate Highway 35 Corridor that connects San Antonio, New Braunfels and Austin.

“We want to have beers that can appeal to everyone,” Ard adds. “Then we’ll stretch our legs with something special that we can get to select accounts.”

Tip of the iceberg

The new economic impact study is based on survey data compiled from Texas Craft Brewers Guild member breweries and brewpubs. It indicates that annual brewery sales have surpassed the $75 million mark. In addition, the report finds that Texas’ craft brewers are planning a total of more than $30 million worth of capital expansions over the next five years.

The degree of that growth could hinge, in part, on Texas legislators’ willingness to adopt less-restrictive brewing laws. At present, the industry contends that it is hamstrung, unable to compete with brewers in other states that operate under less conservative laws. For example, in Texas, brewpubs can’t sell their beers off-premise, and breweries can’t sell theirs on-site.

Still, Metzger says there is reason to be optimistic about the state of the industry.

“It’s great to see more people diving in,” he says about the planned projects in San Antonio. “This is really taking off. It is a testament to the attraction of this industry.”

Busted Sandal’s DiCicco credits Metzger with helping lead efforts to try and bring about legislative change for the industry and claims that push has brought more attention to the craft beer movement in Texas.

“There is a lot of buzz right now about craft beer,” DiCicco says. “I tip my hat to Metzger.”